For Patterson-UTI Corp., rig rates are rising and pressure pumping activity is jumping, but the high demand may eclipse supply for a while, CEO Andy Hendricks said.

PTEN

Hendricks led a conference call in late July to discuss the second quarter results. The activity is at pre-pandemic levels, he told analysts, and customers are ready to lock in prices and get to work. The issue is finding enough equipment, he said.

“Market fundamentals are strong, as demand is increasing for drilling and completions equipment and services, and industry supply remains constrained,” Hendricks said. “We expect the strong demand for our services to continue, and we anticipate further improvements in pricing and activity.”

On the forecast for strong growth to continue, along with cost inflation,...